An insurer uses an Ohio bank for indemnity payments on a California workers' compensation claim. Is this acceptable?

• A. Acceptable
• B. Unacceptable
• C. Grounds for a 4650 penalty
• D. Acceptable, if checks are negotiated at an established business in California

Answer: (D)

The correct answer indicates that it is acceptable for the insurer to use an Ohio bank for indemnity payments on a California workers' compensation claim, as long as checks are negotiated at an established business in California. This is significant because workers' compensation laws require that payments be accessible to injured workers in a timely manner. By ensuring that the checks can be negotiated within California, the insurer is facilitating easier access for the claimant to receive their payments. This satisfies the legal requirement and helps ensure that injured workers do not face undue hardship due to banking logistics or geographic barriers.

Using a bank from another state can raise concerns regarding accessibility and convenience, which is why the provision of negotiating checks locally is essential. It allows for payments to be processed promptly and supports the workers' compensation system's goal of ensuring that injured workers receive their indemnity payments without unnecessary delay.